The Health Department has announced allowed price rises for health insurance from April. Medibank Private will premiums by an average 3.27% and nib Holdings 2.90% against a market average 2.92%.
Announced rates are lower than underlying rates, the broker notes, owing to youth discounts. Underperform and $2.85 target retained for Medibank.
Sector: Insurance.
Target price is $2.85.Current Price is $3.24. Difference: ($0.39) – (brackets indicate current price is over target). If MPL meets the Macquarie target it will return approximately -14% (excluding dividends, fees and charges – negative figures indicate an expected loss).
